Key Stats for SpaceX Stock
- Price change for SpaceX stock: 10%
- $SPCX Stock Price as of Aug. 12: $146
- 52-Week High: $226
- $SPCX Stock Price Target: $232
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What Happened?
Daiwa Capital Markets just trimmed its price target on SpaceX (SPCX) stock, cutting it to $140 from $175. That new target is barely above where the stock closed on Aug. 10, implying just 1% upside. Daiwa kept its neutral rating on SpaceX stock.
The reasoning comes down to cost. Daiwa’s analysts said faster revenue growth is coming at the price of a more capital-intensive business model. In other words, SpaceX is spending heavily to keep growing, and that spending is weighing on the valuation math.
The numbers explain why. In Q2, SpaceX spent about $18.4 billion in capital expenditures, and roughly $15.8 billion of that went toward AI compute infrastructure alone.
The rest funded Starship development, launch infrastructure, satellite production, and ground station expansion. That is a massive amount of cash going out the door in a single quarter.
At the same time, growth has been strong. Revenue hit $7.8 billion in Q2, up 92% from $4.1 billion a year earlier. Adjusted EBITDA came in at $3.5 billion, up 191% from $1.2 billion. The company also narrowed its net loss to $541 million, an improvement of $467 million from the prior year.
So SpaceX stock is growing fast, but it is also burning through a lot of capital to get there. That is the tension Daiwa is pointing to.
Despite the lowered price target, SpaceX stock is not struggling today. Shares were up 10% on Wednesday trading, and the stock has climbed about 37% over the past five days. That kind of run-up may be part of why Daiwa’s new target, even though it’s lower than before, now sits so close to the current share price.
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What the Market Is Telling Us About SpaceX Stock
The market’s reaction suggests investors are not too worried about Daiwa’s more cautious stance, at least for now. A 37% jump in five days is a big move, and a 10% gain the day the target cut came out shows buyers are still stepping in.
Part of that confidence may come from SpaceX’s balance sheet. The company closed the quarter with $100 billion in cash, cash equivalents and marketable securities, plus a $47.5 billion backlog.
That gives SpaceX plenty of room to keep funding its capital-heavy plans across Starship, Starlink and AI compute without an immediate cash crunch.
Still, Daiwa’s note is a reminder that heavy spending has trade-offs.
As SpaceX stock continues to post triple-digit growth in areas like AI infrastructure revenue, the market will likely keep watching how much of that growth actually translates into profit, versus how much gets plowed straight back into capital projects.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
